Boston – Boston Scientific Corp. made a definitive $25 billion offer Sunday to buy rival medical-device maker Guidant Corp., standing by an earlier proposal that aims to scuttle a standing but smaller bid for Guidant from Johnson & Johnson.
Boston Scientific’s offer is largely in line with its Dec. 5 proposal. But the latest proposal from the No. 1 maker of drug- coated stents for coronary arteries includes a related $4.3 billion deal in which the Natick, Mass.- based company will sell Guid ant’s vascular-intervention and endovascular businesses to Abbott Laboratories Inc. if its Guidant acquisition is successful.
Johnson & Johnson responded by affirming its existing $21.5 billion bid. The New Brunswick, N.J.-based maker of contact lenses and baby products also touted its size and rich history as selling points to win over Guidant shareholders.
Boston Scientific said the deal with Abbott to sell Guidant’s business involving stents and other tiny devices to treat and diagnose patients with circulatory problems is aimed at ensuring antitrust approval. Boston Scientific has the top-selling drug- coated stent, and J&J sells the only other such device on the market.
Stents are metal-mesh devices that keep coronary arteries open after surgery to clear blockages. New models are coated with drugs to prevent scar tissue from forming new blockages.
Boston Scientific would receive $3.8 billion for Guidant’s vascular business, plus an extra $500 million when U.S. and Japanese regulators approve the Guidant stent. Abbott also would give Boston Scientific a $700 million loan, payable over five years.
